good morning, america. summer scorcher. a dangerous heat wave burns up 18 states from texas to new york. why temperatures are soaring dangerououy into record-setting triple digits. race against time. the president battles against congress on how to save from default, after a deadlock at a white house meeting. what's really at stake from our social security to taxes? and more revealing details from jaycee dugard. hear her speakakut for first time with her interview with diane sawyer. world cup thriller. the u.s. women's team runs off with the most exciting win ever in american soccer. >> abby wambach.

>> the stars behind this heart-stopping victory are right here this morning. good morning, everyone. did you see could be the most exciting? could be? >> as i said could be, both josh and robin said, could be? are you kidding me? the most exciting win ever. >> it could not turn away. so happy that abby and hope would be joining us. >> a nice little staycation. i love watching you guys at home through my toes. right there in my bed. you have been working the phones this morning. the phones coming out of that white house meeting last night. i have talked to representatives on both sides. they're not closer to any deal.

both sides still very, very far apart. no clear path to solving this debt limit crisis this morning. the only thing they can agree on this morning is they want to keep on meeting. >> there's a press conference that the president will be having at 11:00 a.m. last night, diane's interview with jaycee dugard. it was just amazing. we'll have more on that. also this morning, rock star royalty. will and kate take califorora by storm. stealing a spotlight from hollywood's biggest celebrities. we're hear the few words that kate said to somebody there in the line. >> what a tour that has been. let's get some news first. josh elliott here. >> good morning, george. welcome back, robin. we're going to begin with that heat wave that's stifling much ofofhe nation. high temperatures s e forecast across much of the country. and sam champion is here with the very latest. >> josh, we have heard numbers all summer long. in places lake oklahoma city and

dallas, where they usually have more 100-degree days than thth have. places like new york have heat advisories today. the weather center hasn't put it out for washington, d.c. and philadelphia. i would do that. here are the numbers that we're talking about. wichita, 111 degrees. the warmest temperature they've had since 1980, period. 101 in memphis. we'll have all of the weather when we come back in regular weather. josh? >> okay, sam. stay inside and stay cool. meanwhile, breaking news iraq overnight. several rockets rained down on the heavily fortified green zone ahead of the arrival defense secretary leon panetta. no one was hurt. he's meeting witittop iraqi officials to discuss the possibility of keeping some u.s. soldiers there beyond this year. more than 100 are feared dead after a cruise ship sank in volga river. the overloaded ship went down in minutes after running into a storm on sunday. more than 200 people were

believed to be onboard a boat designed to carry just 120. high waves and conditions are hampering the search. the international space station and shuttle "atlantis" may come too close to comfort with space junk. nasa will know today if they'll have to take evasive action. "atlantis" docked with the space station for the final time on sunday. that's a quick look at the headlines. about four past the hour. we're going to turn now to showdown over the nation's debt in washington. another emergency meeting today to try to hammer out a deal. and another press conference by president obama to pressure the negotiators. we're going to talk to senator dick durbin who was in the meeting. first, abc's jake tapper is at the white house with the latest. good morning, jake. >> reporter: good morning, george. sources say that president obama told congressional leaders in the room last night that he still wants the big deal. $4 trillion in deficit reduction

over the next ten years. speaker john boehner says he wants to, too. but there's no path to get there. the clclk is ticking. the major sticking point, whether it's a large part of tax reform, wages on top wage earners go up. democrats say speaker b bhner agreed to put on the table letting the tax cuts for the wealthiest americans expire. but then could not take the heat from his republican caucus. >> this is serious stuff. we've got to be able to deliver on this promise. and i'll make sure that's done and no tax increases. >> reporter: republicans say that the problem is president obama hahabeen unable to bring his own party around to own entitlement spending medicare medicaid, social security, that he put on the table. tick tock. the goal is to reach an agreement in the next couple of weeks so that the law can be written and passed before the deadline of august 2nd, that's when the federal government is

slated to run out of money. which would mark the first time the u.s. government has ever defaulted on its debt. the immediate result? checks might be cut for social security payments, benefits. salaries for military families. the stock market could dive, perhaps as much as 9%. or roughly $800 billion. some of it from your retirement savings. interest rates for the u.s. government and for us would shoot up. trying to get a mortgage? what about a car loan? you'll have to pay more. and all of this turmoil could make employers even more reluctant to hire. resulting in stifling job growth and leading to more layoffs. sources saying in n e room last night, despite some republican skepticism the august 2nd deadline is real and the u.s. cannot default. but there was little agreement on how to avoid that from happening. george?

>> boy. that's exactly right. jake, thanks so much. let's bring in dick durbin. thanks for getting up this morning after that late-night meeting. the president wants this big deal. we saw jake lay out the consequences of no deal what is the path forward giving the fact that republicans aren't going to go for the big deal that president obama wants? >> the president will call us again today. i'm disappointed. last thursday there was resolve through most of the leadership. something large enough to address our deficit in a serious way or in a coordinated way. bringing everything to the table and being balanced. unfortunately over the weekend, the speaker said i can't deliver. i can't produce on my side. we had congressman kantor walk out of the biden talks, as well. we both have to be willing to put things on the table and get this resolved. >> t they say that the democrats won't go for the kind of

medicare and social security savings that will be necessary, as well. i want to drill down here on where you go next because that big $4. >> translator: trillion deal is not going to happen. how do you get something together in the next several days to make sure all of those consequences that jake spelled out of a no deal or a potential default don't happen? >> the president told us, roll up your sleeves, be ready to stay and get the deal done. there's been other folks on the other side of the table that says, maybe we need half a deal. maybe we need it for a few months. and the president said no. you told us over and over again, we heard your speeches that this deficit is a moral crisis. it's holding back our economic recovery and we got to give some certainty to the business community across country about our future. and if that's the case we have to stay, close the deal to get it done in a timely fashion, so we don't damage the economy, in the way your reporter mentioned

earlier, where interest rates could go up and hurt families and businesses all across the united states. >> last week you said it could be too late to negotiate that kind of a deal before the deadline. but think of a short-term extension. republican leaders in the senate, mitch mcconnell is saying that he has a contingency plan to avoid default. any idea what that is? or whether it will fly? >> what i was suggesting a two-step. not a two-part deal. it's a little bit different. the first part would go in effect immediately. to show people in america and around the world that we're serious. i'm worried about this deal that we can work from week-to-week and month-to-month. the president is determined, he said it yesterday and he said it very convincingly, this is a great economy. we cannot be lurching from six-month deal to six-month deal to try to get this done. >> i heard sources say the chance of getting a deal is no better than 50/50.

do you agree with that? >> no, i disagree with that. the president is determined to keep us there, the decisions that we make that in room will affect americans. if we falter, if we don't have political courage and will to get this done this economy is going to be hurt. and it's going to fall on our shoulders. >> senator, thank you for your time. we'll have a special report covering president obama's news conference at 11:00 a.m. eastern, 8:00 pacific. the massive scandal that has brought down one of the world's largest and oldest newspapers owned by media mogul rupert murdoch. new signs that it could have spread all of the way to the u.s. jeffrey kofman has more for us. good morning, jeffrey. >> reporter: good morning to you, robin. here's the final issue of "the news of the world." this scandal did not die with the death of the newspaper. all eyes on a huge american company, news corporation.

rupert murdoch rushed to london to try to contain the damage. while he arrived he was reading the last news of the world. the paper that helped establish what is now a $33 billion global empire. the paper he decided he had to kill. his empire now under siege because in its pursuit of sensational stories, "the news of the world" crossed the line into criminal activity. the public has lost faith. >> i think it does need to go for what it's done. >> reporter: rebekah brooks was editor a decade ago when many of the alleged crimes were committed. she gets to keep her job. and so does james murdoch who runs the british arm of the company. he, too, said it wasn't his fault. >> i acted on the advice of executives and lawyers with a

completion investigation. >> reporter: as s e ultimate boss, james could face prosecution under u.s. and british business law. if convicted, jail time. >> while brooks and james murdoch knew about it or not, they're still responsible for what goes on their watch. it only adds to the misery that rupert murdoch's got to deal with this week. >> reporter: this scandal is rippling across the u.s. according to a rival tabloid, "the daily mirror," they tried to hack into the cell phones of 9/11 victims. apparently it didn't work. >> jeffery, thanks so much. you know, we all know that driving while texting or talking on a cell phone is a dangerous behavior, shown in study after study. many still do it. is there any way to change behavior? abc'c'lisa stark has our exclusive report on a new study that shows the answer is yes. >> reporter: the evidence is clear.

many of us are driven to distraction. where is this driver looking? not on the road ahead. she was texting. and this trucker. cell phoho in one hand. suddddly he's careening across four lanes and rolling over. >> being stopped because of your cell phone use. >> reporter: what happened if police would crack down on distracted drivers? to find out, department of transportation paid for programs in syracuse, new york. the results are in. >> we ended up issuing over 9,000 citations for drivers. and we also found a substantial change of behavior. >> reporter: in syracuse the number of drivers u ung hand-held cell phones or texting, dropped 57%. texting while driving plummeted 72%. >> the key is consistent, focus, dedicated enforcement.

>> reporter: at a connecticut racetrack, i tried to text and drive. my speed slowed. and i hit twice as many cones. still, drivers still think they can do this safely. the study shows it takes tickets to stop talking and texting. for "good morning america," lisa stark, abc news, washington. >> that's an eye-opener. so scary. when you see something. put it down. let's go to will and kate. back home this morning after a triumphant trip across north america. the royal couple spent a whirlwind weekend in california, where even hollywood selects were star-struck by the couple. bob woodruff was there and has so much more for us. >> reporter: it was a royal flush. three fun-filled days in the media capital of the world. people couldn't get enough. prince william accustomed to the attention. but for his new bride, trial by

fire. >> she looks confident. i know inside she's nervous. but that doesn't show. and that's important. >> reporter: on their last day, we finally heard from the duchess, it wasn't much. but it caused a minor tremor here in l.a. >> how was your first trip to u.s.? >> brilliant. really enjoyed it. thank you. >> reporter: capping the weekend just before the departure sunday, a salute to the military families. >> this is about men and women who, of their own free will, choose to put their lives on the line for their country. i'm delighted, therefore, our foundation, and in that i include, my low-flying, apache, very average brother, as a partner in today's event. >> reporter: over the weekend, hollywood royalty met real-life royalty. the most coveted ticket in hollywood. >> they're the biggest stars of the world. >> reporter: prince william and

his new bride dazzled, showing a rare display of royal pda. a hug here, a kiss there. after william scored four of his team's five goals. in a visit to an art school on skid row, we saw a rare side of the royal relationship. as kate worked her brush over the canvas, william turned and softly asked his bride, what the heck is that? after a whirlwlwd tour of north america, william and kate left north america sunday and made their way back to the other side of the pond. bob woodruff, abc news, los angeles. >> the word heard over and over again, lovely. >> they looked like they had a great time. and the weather cooperated in l.a. absolutely lovely. >> one of the few places it was comfortable on the west coast. we're going to talk about this 100 degree and above temperatures. let's zoom in dallas. tenth day in a row over 100 degrees or triple digits.

take it to 15. you'll be there all week long. that's unbelievable. here's where the storms are rolling today. these storms will shut down the heat in places like minneapolis. they'll make it better in chicago. there's a look at the big board.

it continues to be a comfortable 76 in l.a. today. robin? >> okay, sam. now, to that thrilling win for the u.s. women's soccer team over brazil in the world cup in germany. we could not stop watching this, could we, josh? >> it was unbelievable. the u.s. advancing in stunning fashion. eliminate brazil in penalty kicks. after a last-minute goal by abby wambach and the miracle was complete. the emotional scene seemed equal parts remarkable and familiar. >> she got it.

and the u.s. are into the last. >> reporter: it was as though they had done no less than bend time. for 12 years to the day, after the u.s. womenenon a world cup on home soil, a watershed moment that kick-started women's pro soccer in the u.s. and stoked the imagination of a generation of young american girls. those youngsters came of age in germany sunday. >> rapinoe gets it across. can you believe it? abby wambach has saved the u.s.'s life in this world cup. >> reporter: as the stars of '99 watched from the broadcast booth the girls they inspired finally came into their r n. sweet redemption after the world cup disappointment against brazil just four years ago. but it was an unlikely triumph. a questionable ejection forced the u.s. to play w wh a fewer player for almost half the match. then seconds from elimination,

abby made the goal of her life. after american goalkeeper hope solo made the save of her life, abby krieger sent the u.s. through. >> what a performance by the u.s. >> repepter: beyond advancing it's unclear what this win might mean for this u.s. team. but for one magical day, for one moment, they made good on the promise of their own here and provided quite simply the most exciting victory in america soccer history. the win puts the u.s. on course for a possible rematch against sweden. first things first. america has to get by france. >> we'll talk to abby and hope coming up later. also coming up -- the amazing journey of jaycee dugard. brand-new details of inside her return home and life with her children. and just days before casey anthony goes free. she prepares for life outside of jail.

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interior. they were able to keep the flames from spreading to other buildings but one classroom burned suffered extensive damage. let's see how the monday morning commute is going. >> we've got a new report of an accident. this so the east shore freeway westbound 80. it's blocking a lane there. you'll find slowing as you approach the bay bridge. earlier accident at bailey road westbound 4 you can see the damage there and slow traffic from altamont. >> thanks a lot. we'll talk

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we're off to a murky start. flight arrival delays in sfo and patchy drizzle around the bay. talk about temperatures cool this morning and all in the 50s. they'll be much cooler than average this afternoon by about 35-12 degrees. upper 50s to low 60s into san francisco. even 82 in and the dwrok for the warm s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s

s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s s8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x8x

what has it taken for you to believe that you could leave? >> i have asked that questions many times. mind manipulation, plus the physical abuse that i suffered in the beginning, there was no leaving. maybe, if one of the girls were being hurt. >> that is jaycee dugard. talking openly about why she and her daughters could not escape during her 18 years in captivity. just ahead, more of her emotional exclusive interview with diane and her incredible journey from young kidnap victim to brave young woman. >> it's just incredible to see her so composed and so centered. from all accounts, such an amazing mom. a lot more on that coming up.

also, a very different story. casey anthony the trial is now over. riveted the nation, of course. now, what's ahead for casey? she'll get out of jail next sunday. we heard about all of these offers that she was getting. ashleigh banfield has been looking into it. but, now, lot of those offers may be drying up. >> people are backininaway now. plus, blood in the water. sharks surfacing at a popular vacation destination. how worried you should be. >> i would be worried with a sight like that. we begin with more of diane's stunning exclusive interview with jaycee dugard. she tells her story in a new book out tomorrow. it's called "stolen life." helped captive for 18 years. why running away was never an option and how she hopes to move forward.

>> reporter: did you think about taking those two girls and running? >> i'm sure i did. but, it wasn't something that i thought i could do. >> reporter: because? >> the situation felt like it wasn't an option. i don't know how else to explain it. there was no leaving. >> reporter: what woululit have taken for you to believe that you could leave? >> i have asked myself that question many times. the mind manipulation. plus, the physical abuse that i suffered in the beginning, there was no leaving. maybe, if one of the girls were ing hurt. >> reporter: and everyone who thinks that maternal impulse, scoop them up to run -- >> they were safe. i was being told that the outside world was dangerous. >> reporter: ironically enough, filled with rapists and pedophiles. i couldn't protect them out there.

>> what i knew was safe, the unknown that was out there, was terrifying. especially thinking about the girls. >> reporter: do you think you'll ever understand it, why you didn't leave? >> i don't think so. >> it wasn't until two suspicious campus police officers uncovered the truth that jaycee was reunited with her mother after 18 years. >> it's like you can see your mom. i can see my mom? it was like a question to them. you know? i can? >> you're at the office, the phone ring. >> unbelievable. absolutely unbelievable. >> then it was just disbelief. i was like, no, you're joking. don't do this to me. it's not funny. >> i remember you shouting. they got her. my daughter. >> i was crying. when you're crying, you can't speak. i just said come quick.

>> i remember teteing you, i'm coming, baby, coming. and then i said something about having babies. i didn't mean i had babies. i mean i had had babies. i didn't know what to say. it was like unbelievable. >> when you heard that she had daughters? >> babies. i'm thinking, babies. okay, i can deal with this. >> those babies were by now, 15 and 11. the first night the police officer let them stay in the motel. jaycee wants her sister and her mother so much, she couldn't sleep. i woke the girls and said, i'm so happy. i'm so happy. i can't wait anymore. i don't care if they're sleeping. i walked in, i'm so happy. i'm so happy. >> so happy. and stunningly, even now two years later, with all that time

lost, she insists that life is too short for a life of bitterness or rage. >> i don't feel like i have this rage inside of me that's building. >> how could you not? >> i refuse to let him have that. >> reporter: meanwhile, jaycee told diane every day is an amazing new chapter. >> tell me about learning how to drive. >> i drive every day. i go to parks. i get out, i took two spaces. >> reporter: how about years of no sun? >> how to preserve yourself. that's the kind of humor that i used to get by. >> and as remarkable her recovery seems to be so far, she's still learning to adapt. part of the therapy, riding and

caring for horses. >> maybe i believe in the higher power. but i believe in nature. and what we see around us. as healing. >> you know, she's remarkable. i will give that. i'm confident that the community and the support that she has put around her, since she has come out, will carry her through whatever bumps in the road she ts. and i think she has to a lot to teach all of us. >> i want to find love one day, the kind of love that i read about. still want that? >> i don't know. i don't really think about it. i'm happy the way my life is now. if it happens it happens. if it doesn't, i'll still be happy. >> but it doesn't seem impossible after what you have been through? >> no, it doesn't seem impossible. >> really love when jaycee and her mother were on the porch with diane and the way they

looked at each other. when jaycee said when she had her first daughter at age 14 in captivity, that she didn't feel alone anymore. >> i liked that simple phrase. you can't have me. so much strength. >> i is not too late to see all of diane's exclusive interview with jaycee dugard. head to our website to watch the full primetime special. now back over to sam. >> heat in places like milwaukee, near 100 degrees. certainly felt that way with the heat index, took its toll on the runners in a half-marathon. it was 85 degrees when the marathon started. wichita, 111. warmest temperature since 1980. folks keeping cool any way they could. the heat spreads towards the eastern seaboard. so, you're looking at 90 today in boston. it drops a little bit wednesday with that line of thunderstorms that we showed you.

all of that weather was brought to you by weight watchers. robin? george? >> all right, sam. thank you. coming up -- casey anthony leaving jail a free woman less than a week now. we're going to tell you about her tough road ahead and what's being offered now. ♪ you know how i feel ♪ ♪ breeze drifting on by ♪ ♪ you know how i feel ♪ [ female announcer ] weight watchers, rated #1 best plan for weight loss by u.s. news and world report. join right now and you can join for a dollar. weight watchers. because it works. [ male announcer ] this...is the network -- a network of possibilities.

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in less than a week casey anthony will walk free into a very uncertain world. estranged from her family. no visible of support. rumors of a big payday outside of prison are just that bad rumors. ashleigh banfield joins us. those offers seem to be vap rating sflr six days until she's out, george. they don't allow interviews in the orange county jail. >> your mother will never forgive you. >> reporter: for more than two months c cey anthony sat silently in court as everyone but her told their story. the question is will casey cash in and talk to the highest bidder? >> what's next for casey? >> i don't know. i think that'sy casey's story to

tell. >> she can pose in play buoy. she can wrote a book. she can millions of dollars. >> reporter: even before the trial began, reports that lifetime networks offered casey $2 million. the network denied the claim. but for now, the public still seething over her acquittal, some movie and tv executives say they wouldn't touch casey's story with a ten-foot pole. >> i would never do it. >> reporter: not even a pornography producer tells tmz they're now pulling back on that offer and there's facebook page called boycott casey anthony deals >> i think the idea that a sane civilization could consume product of a woman from such extraordinarily dubious character is enough make anyone

nauseous. >> it won't be easy for casey when she leaves jail. she turned her back on mom. refusing her visit last week. she'll likely be on her own. 2007 paris hilton walked out of jail after a probation violation. she didn't interview for free and o.j. simpson, 3.5 million book deal all collapsed. we have some precedent here and it's not good. >> we'll be watching. ashleigh banfield thanks very much. when we come back -- be careful at the beach, you may be swimming with sharks. why great whites are cruising right offshore. with an irregular heartbeat called atrial fibrillation or afib, that's not caused by a heart valve problem. today we have pradaxa to reduce the risk of a stroke caused by a clot.

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especially with shark attacks on the rise right now. abc's linsey has details from massachusetts. are beach-goers worried about all? >> reporter: good morning, robin. there is some concern. if row can see the sand bar just beyond those buoys, where seals have been known to congregate this summer. they can exceed 20 feet in length. weigh more than 2 tons and the most feared predators in the ocean.n. great white sharks. and this summer shark sightings are expected to be way up. blood-thirsty tourists are flocking to the beaches wanting to get up close and personal with a real-life "jaws." three great whites have been spotted in the area in just over a week. >> my heart was racing.

because, you never get to see them. >> reporter: local fisherman snapapd these shots of a great white off of his boat. >> i have seen a lot of sharks fishing and tuna fishing and doing some other things out there. >> reporter: a new study shows unprovoked shark attacks are on the rise. 723492010. up from 63 in 2009. 42% of those attacks happened in north american waters. the majority in the united states. one reason the sharks like this area, these beaches are full of seals. >> the seal population has grown here. you walk around and you see so many of them. of course, seals are a food source for sharks. >> reporter: swimmers are being urged to be extra vigilant in the waters. >> if you see a shark, or anything that might look like a shark, get out of the water and not my authorities.

>> reporter: no beaches have been closed in the area so far. some say they wouldn't be brave as i am standing in these waters. the last fatal shark attack was actually back in 1936. >> it looks beautiful there. from shore. the amazing comeback victory by the u.s. women's soccer team next. what causes back pain? it doesn't only happen just because you lift something too heavy. to find out what causes back pain and see what you can do to prevent it go now to abcnews.com/gma. and a choice. take advil now and maybe up to four in a day. or choose aleve and two pills for a day free of pain. way to go, coach. ♪ ♪

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all right, guys coming up the real story behind the bachelor breakup.

we'll talk to host chris harrison about what really happenen between brad and emily. pittsburg and east bay park police are investigating another shooting on the de anza trail. it happened just before midnight. no word on the victim's condition but just a few blocks away from a fatal shooting on the trail last week and third shooting since may. temperatures are going downward but they will come up by the later of the week. >> but we'll have to wait for the better part of the forecast drizzle in the next hour and clouds won't pull back until 2:00. that is why temperatures are so google. 80s inland and cooler by wednesday. we have a sig alert

eastbound highway 4 is shut down at leverage due to police activity. westbound san mateo bridge stall and it has

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♪ p prey woman walking down the street ♪ [ cheers and applause ] by the way, because it's 7-eleven you get a free slurpee today. i'm not making it up. the reason we're playing this song, though s because the glamorous duchess of cambridge is just one of the many outfits that wowed us all. you know she just raised the bar, lara. >> unbelievable. whether she was working the red carpet or rubbing elbows with the locals it seemed like kate

came dressed to impress. we'll get a full fashioneport from the stylist to the stars, rachel zoe. >> what are you doing? >> i don't know. i don't understand our obsession. i think will and kate are a couple of terrific people. we're all overly impressed. they're newlyweds, afterwards. i'm just saying. that's all. look at each other. that's what people do. >> royals are normally very reserved. it's nice to see a young couple in love. we don't normally see that. >> with the royals. >> that's terrific. >> well done guys. last time we worked the phones on the debt limit, the bachelor, we have the inside scoop on why emily maynard broke

off her engagement with brad from cl chris harrison. the u.s. women's world cup soccer team coming from behind against brazil. they're on the semis. we'll talk to some of the stars of the game in just a little bit. but first, abby -- >> hope solo terrific name. i can't wait for that. but first -- republicans and dmts scrambling to hammer out a deal now on raising the debt ceiling are planning to meet today and every day until they reach an agreement. sunday's meegtd at the white house resulted in yet another stalemate. the government is in danger of defaultingen its debt. the president is holding a press conference on where things stand at 11:00 eastern time.

meanwhile the u.s. is suspending $800 million in aid to pakistan. the obama administration says that the decision will stand until both countries can mend their rocky relationship. some experts say that the move is unlikely to pressuree the country to cooperate anymore. more troubling news about the jobss market following friday's disappointing numbers. a new survey 64 .of businesses are not planning to hire in the next year. small businesses employ about half of nation's private s stor workers. first day to reserve tickets for the 9/11 memorial in new york. it opens to the public september 12th. tickets are free and you can learn more about them at 911memorial.com.

and an ohio man is being called a hero this morning and rightly so after saving his own son's life. abc's matt gutman has details of the father who did not hesitate to put himself in harm's way. >> reporter: 3-year-old dylan mccoy turned deadly serious on saturday. he was jumping on a rotting piece of plywood, the wood gave way and dylan plunged 40 feet. hearing terrifying screams, they lowered a ladder into the wellll but it wasn't long enough. >> my heart was down there with him. i didn't know what to do. >> reporter: it was nearly pitch black at the end of the well. he was in water that was 10 feet deep. dylan learned how to swim this summer, he kept treading water.

his father reached his child, holding him as they waited for help. >> i told him to calm down. it's going to be all right. that daddy's coming. stop crying. it's going to be okay. >> reporter: finally the fire department arrive pulling dylan from the abyss. s dad was so worried about his son he didn't wait to be rescued himself and quickly clampered up to escape. >> i feel that he had an angel with him the whole way. something was protecting him. >> reporter: for "good morning america," matt gutman abc news. >> terrific story. now, here's our diane sawyer for a preview of tonight's "world news." diane? josh good morning. our made in america team is at it again. tell everyone to get ready. we're trying to create more american jobs right in your neighborhood. and there will be a block party

starting tonight. be there. it's tonight on "world news." and it's something to see what people are doing. >> who doesnsn like a good block party? i'm in. >> we do it every morning right outside. >> thanks, josh. the buzziest headlines and trends. let's head over the big board and lara >> thank you. good morning everyone. we start with some fabulous news from david and victoria beckham, a daughter at last. they have already three adorable sons. victoria gave birth to their first little girl yesterday. guys, her name is harper. isn't that great? congratulations. a little cheer for the beckhams. all right, moving on right now, we love this story. with a little baby theme going on right now.

check out this video. it comes from japan. we're going to file this under insanely cute. teeth kg be a tough on a toddler. also tough on this tabby cat. the video shows the toddler testing the cat's tail then deciding that the cat might want to try it itself. the very patient pussycat is named mel. take a close look at his face though. his expression is kind of saying, don't push your luck or else -- knockout punch. moving right along, you guys, anna wintour, we might get some insight into what really goes on in those hallowed halls of conde nast empire. she's preparing to are lease her

memoir memoir. a vogue rep says, not true. so, to be determined. thank you very much. and finally, it was a thriller at safeco when the seattle mariners played the san diego chargers and had nothing to do with the action in the field. it was all this little guy. we found out his name is jonah. when the song "thriller" came on he mimickedd jackson's moves to perfection. some caughtt on the jumbotron. that hasn't stopped the video from going virile. and that is what's happening in the pop news. just yesterday, allie and harper were complaining that we gave thehe boys' name. we have harper beckham.

out in times square every morning if you'r'rnot hear for gma you're missing something. tell me your name. >> my name is madison. >> do you nomad sop? >> she's my sister. let's get to the boards. one or two things happening this morning. these heat warnings and advisories are serious today. lot of triple-digit heat. up comes the humidity level. plan your cooling breaks. if you're in this area where you got the color on the map today. even toward new york city i would include philadelphia and washington, d.c. all areas to me that you got to take it easy. it's gorgeous in most places. seattle, you may see a sprinkle. once you get inland towards the desert, you got that humidity that would cause those thunderstorms during the day today. severe storms in the area shaded in red.

everybody from littleton, north carolina is here. i'm the only one not wearing yellow lara. here's a look at what's ahead -- the new comeback kids of the world cup. the u.s. women's soccer team joins us to talk about their stunning upset victory. also, behind the bachelor breakup with chris harrison.

emily maynard revealing why her engagement with brad womack really ended. and how will and kate took hollywood by storm. on "good morning america." reduces the visible signs of aging... minimizes the look of wrinkles... hydrates... renews... seems like an amazing moisturizer? actually... it's an amazing makeup. introducing revlon age defyininwith dna advantage. its powerful skinc allegation. >> only -- >> good d rning. i'm george stephanopoulos at abc news headquarters in new york. we're interrupting your regular program because president obama is about to hold a press conference at the white house. it's his second in the last two weeks. with just over three weeks to go until america reaches the limit of our ability to borrow more money and pay the nation's

bills, negotiations over extending that debt limit are badly stalled. the president wants to ratchet up the pressure on congressional negotiators. he'd been hoping to strike a deal calling for $4 trillion of deficit reduction through a mix of spending cuts and tax revenue increases. but house speaker john boehner shut that down over the weekend saying they couldn't go along with tax increases and democrats are resisting medicare cuts and social security savings the president signalal he was willing to accept. they'll work later this afternoon on a fallback proposal that might be able to pass the congress. i want to bring in jake tapper now. the big question is what can those negotiators agree to that will pass? >> nothing unless at least one side blinks. there are too many lines drawn in the sand right now. democrats saying that they're not going to vote for spending cuts and entitle programs, social secured, medicare, , without some tax increases, republicans saying no tax increases at all. speaker boehner has said however much they raise the debt ceiling

needs to be matched by that much in deficit reduction. president obama has said that whatever they raise they need to kick the deficit reduction the debt ceiling movement until after the election. there are just too many contradictory ultimatums right now for this to work. >> they'll be working on cuts that vice president biden is nenetiating with the group before snorkses stalled last week. depending who you talk to, they had agreed to anywhere from one trill to two trill in cuts. here is the president. >> good morning, everybody. i want to give a quick update on what's happening with the debt negotiations, provide my perspective, and then i'm going to take a few questions. as a a of you know i met with congressional leaders yesterday. we're going to be meeting again today and we're going to m mt every single day until we get this thing resolved. the good news is that all the leaders continue to believe rightly, that it is not

acceptable for us not to raise the debt ceiling and t tallow the u.s. government to default. we cannot threaten the united states credit for the first time in our history. we still have a lot of work to do, though, to get this problem solved. so let m mjust make a couple of points. first of all, all of us agree that we should use this opportunity to do something meaningful on debt and deficits, and the reports that have been out there have been largely accurate that speaker boehner and myself had been in a series of conversations about doing the biggest deal possible so that we could actually resolve our debt and our deficit challenge for a long stretch of time. and i want to say i appreciate speaker boehner's good faith

efforts on that front. what i emphasized to the broader group of congressionon leaders yesterday is now is the time to deal with these issues. if not now, when? i've been hearing fromom my republican friends for quite some time that it is a moral imperative for us to tackle our debts and our deficits in a serious way. i've been hearing from them that this is one of the things that's creating uncertainty and hold being back investment on the part of the e siness community. and so what i've said to them is let's go. and it is possible for us to construct a package that would be balanced, would shaha sacrifice, would involve both parties taking on their sacred cows, would involve some meaningful changes to medicare and social security and medicaid

that would preserve the integrity of the programs and keep our sacred trust with our seniors but make sure those programs were there for not just this generation but for the next generation, that it is possible for us to bring in revenues in a way that does not impede our current recovery but is fair and balanced. we have agreed to a series of spending cuts that will make the government leaner, meaner, more effective, more efficient, and give taxpayers a greater bang for their buck. that includes defense spending. that includes health spending. it includes some programs that i like very much and would be nice to have but that we can't afford right now. and if you look at this overall package, we could achieve a situation in which our deficits were at a manageable level and our debt levels were stabilized

and the economy as a whole i think, would benefit from that. moreover, i think it would give the american people enormous confidence that this town can actually do something once in a a while. that we can defy the expectations that we're always thinking in terms of short-term politics in the next election and every once in a while we break out of that and we do what's right for the country. so i continue to push congressional leaders for the largest possible deal and there's going to be resistance. there is, frankly, resistance on my side to do anything on entitlements. there is strong resistance on the republican side to do anything on revenues. but if each side takes a max malist position, ifach side wants 100% of what its

ideological predispositions are, then we can't get anything done. and i think the american people want to see something done. they feel a sense of urgency both about the breakdown in our political process and also about the situation in our economy. so what i've said to the leaders is bring back to me some ideas that you think can get the necessary number of votes in the house and in the senate. i'm happy to cocoididr all options, all alternativesshat they're looking at. the things that i will not consider are a 30-day or a 60-day or a 90-day or a 180-day temporary stopgap resolution to this problem. this is the united states of america. and we don't manage our affairs in three-month increments. we don't risk u.s. default on

our obligations because we can't put politics aside. so i've been very clear to them we're going to resolve this and we're going to resolve this for a reasonable period of time and in a serious way. my hope is, as a consequence of norks that take place today, tomorrow, the next day and through next weekend, if necessary, that we're going to come up with a plan that solves our short-term debt and deficit problems, avoids default stabilizes the economy, and proves to the american people that we can actually get things done in this country and in this town. all right.t. with that i'm going to take some questions. starting with matt. >> thank you very much, mr. . president. two quick topics. given that you're running out of time what is your plan for

where these talks go if republicans continue to oppose any tax increases? secondly, on your point about no short-term stopgap measure, if it came down to that and congress wants that, i know you're opposed to it, but would you consider it? >> i will not sign a 30-day or a 60-day or a 90-day extension. that is just not an acceptable approach. if we think it's going to be hard -- if we think it's hard now, imagine how these guys are going to be thinking six months from now in the middle of election season. it's not going to get easier. it's going to get harder. so we might as well do it now. pull off the band-aid. eat our peas. [laughter] now is the time to do it. if not now when? we keep on talking about this stuff and we have these

high-minded pronouncements about how we've e t to get control of the deficit and how we owe it to our children and our grandchildren. well, let's step up. let's do it. i'm prepared to do it. i'm prepared to take on significant heat from my party to get something done. and i expect the other side should be willing to do the same thing, if they mean what they say, that this is important. let me just then comment on this whole issue of tax increases because there's been a lot of information floating around there. i want to be crystal clear. nobody has talked about increasing taxes now. nobody has talked about in creasing taxes next yearar what we have talked about is that, starting in 2013, that we have gotten rid of some of these

egregious loopholes that are benefiting corporate jet owners or oil companies at a time where they're making billions of dollars are profits. what we have said is, as part of a broader package, we should have revenues and the best place to get those revenues are from folks like me, who have been extraordinarily fortune and that millionaires and billionaires can afford to pay a little bit more, going back to the bush tax rates. and what i've also said to the republicans is, if you don't't like that formulation, then i'm happy to work with you on tax reform that could potentially lower everybody's rates and broaden the base as long as that package was sufficiently progressive so that we weren't balancing the budget on the backs of middle-class families and working-class families and we weren't letting hedge fund managers or authors of best-selling books off the hook.

that is a reasonable proposition. so, when you hear folks saying well, you know, the president shouldn't want massive job-killing tax increases when the economy is this weak. nobody is looking to raise taxes right now. we're talking ababt potentially 2013 andndhe out years. in fact, the only proposition that's out there about raising taxes next year would be if we don't renew the payroll tax cut that we passed in december and i'm in favor of renewing it for next year as well. but there have been some republicans who said we may not renew it. and if we don't renew that then the $1,000 that's been going to a typical american family this year as a consequence of tax cuts that i worked with the republicans in the past in december, that lapses. that could weaken the economy. so i have bent over backwards to work with the republicans to try to come up with a formulation

that doesn't require them to vote sometime the next month to increase taxes. what i've said is to identify a revenue package that makes sense, that is commensurate with the sacrifices we're asking other people to make, and that i'm happppto work with you to figure out how else we might do it. >> [inaudible]? >> i do not see a deal if they don't budge, period. i mean, if the basic proposition is it's my way or the highway then we'e' probably not going to get something done because we've got divided government. we've got democrats controlling the senate. we prorobly are going to need democratic votes in the house for any package that could possibly pass. and so, if in fact mitch mcconnell and john boehner are sincere -- and i didn't believe they are that they don't want t

see the u.s. government default -- then they're going to have to compromise just like democrats are going to have to compromise, just like i have shown myself willing to compromise. chip reid. >> thank you, mr. president. you said that everybody in the room is willing to do what they have to do, wants to get something done by august 2. but isn't the problem the people who aren't in the room and in particular r rublican presidential candidates, republican tea parters on the hill and the american public. a cbs news poll showed only 24% of americans said you should raise the debt limit to avoid an economic catastrophe. there are 69% who oppose it. isn't the problem that you and others have failed to convince the american people that we have a crisis h he and how are you going to change that? >> well, let me distinguish between professional politicians and the public at large. the public is nono paying close attention to the ins and outs of

how a treasury operation goes. they shouldn't. they're worrying about their family, they're worryingngbout their jobs, they're worrying about their neighborhood. they've got a lot of other things on their plate. we're paid to worry about it. i think, depending on how you phrase theheuestion, if you said to the american people, is it a good idea for the united states not to pay its bills and potentially create another recession that could throw millions of more people out of work, i feel pretty confident i could get a majority on my side on that one. and that's the fact. if we don't raise the debt ceiling and we see a crisis of confidence in the markets and suddenly interest rates are going up significantly and everybody is paying higher interest rates on their car loans, on their mortgages, on their credit cards, and that's sucking up a whole bunch of

additional money out of the pockets of american people, i promise you they won't like that. now, i will say that somomof the professional politicians know better and for them to say that we shouldn't be raising the debt ceiling is irresponsible. they know better. you know, this is not something that -- you know, i am making up. this is not something that tim geithner is making up. we're not out here trying to use this as a means of doing all these really tough political things. i'd rather be talking about stuff that everybody welcomes, like new programs or the nfl seasonon getting resolved.

unfortunately, this is what's on our plate. it's before us right now. and we've got to deal with it. so what you're right about, i think, is that the leaders in the room here, at a certain point have to step up and do the right thing regardless of the voices in our respective parties that are trying to undermine that effort. i have a stake in john boehner successfully persuading his caucus that this is the right thing to do just like he has a stake in seeing me successfully persuade the democratic party that we should take on these problems we've been talking about for too long but haven't been doing anything about. >> do you think you'll come wack to the $4 trillion deal? >> i think speaker boehner has been very sincere about trying to do something big. i think he'd like to do something big. his politics within his caucus are very difficult, you're right, and this is part of the problem with a political process

where folks are rewarded for saying irresponsible things to win elections or obtain short-term political gain when we actually are in a position to try to do something hard. you know, we haven't always laid the groundwork for it. and i think that it's going to take some work on his side but look, it's also going to take work on our side in order totoet this thing done. i mean, the vast majority of democrats on capitol hill would prefer not to have to do ananhing on entitlements, would prefer, frankly, not to have to do anything on some of these debt and deficit problems. and i'm sympathetic to their concerns because they're looking after folks who are already hurting and already vulnerable and there are a lot of families out there and seniors who are dependent on some of these programs. and what i've tried to explain

to them, number one, if you look at the numbers then medicaren particular will run out of money and wewe wl not be able to sustain that program no matter how much taxes go up. i mean, it's not an option for us to just sit by and do nothing. and if you're a progressive who cares about the integrity of social security and medicare and medicaid and believes that it is part of what makes our country great, that we look after our seniors and we look after the most vulnerable, then we have an obligation to make sure that we make those changes that are required to make it sustainable over the long term. and ififou're a progressive that cares about investments in head start and student loan programs and medical research and infrastructure, we're not going to be able to make progress on those areas if we haven't gotten

our fiscal house in order. so the argument i'm making to my party, the values we care about, making sure that everybody in this country has a shot at the american dream and everybody's out ththe with the opportunity to succeed if they work hard and live a responsible life and the government has a role to play in providing some of that opportunity through things like student loans, making sure that our roads and highways and airports are functioning and making sure that we're investing in research and development for the high-tech jobs of the future, if you care about those things, then you've got to be interested in figuring out how too we pay for that in a responsible way? and so, yeah we're going to have a salesob. this is not pleasant. it is hard to persuade people to do hard stuff that entails trimming benefits and increasing

revenues. but the reason we've got a problem right now is people keep on avoiding hard things and i think now is the time for us to go ahead and take it on. rich wolfe. >> [inaudible] the $4 trillion deal you're talking ababt roughly now at about four to one spending to taxes. we're talking about $800 billion in taxes roughly. that doesn't seem very fair to some democrats. i'm wondering if you could clarify why we're at that level? also if you could clarify your social security position. would any of the money from social security even from just changed c.p.i. go towards the deficit as opposed to back in the [inaudible]. >> with respect to social securiri, social security is not the source of our deficit problems. social security if it is part of a package would be an issue of how do we make sure social security extends its life and is

strengthened. so the reason to do social security is to strength social security to make sure that those benefits are there for seniors in the out years. and the reason they include that potentially in this package is, if you're going to take a bunch of tough votes, you might as well do it now as opposed to trying to muster up the political will to get something done further down in the future. with respect to a balanced package the package that we're talking about exactly what i would want? no. i might want more revenues and fewer cuts to programs that benefit middle-class families that are trying to send their kids to college or benefit all of us because we're investing

more in medical research. so i make no claims that somehow the position that speaker boehner and i discussed reflects 100% of what i want. but that's the point. my point is that i'm willing to move in their direction in order to get something done and that's what compromise entails. you know, we have a system of vernment in which everybody's got to give a little bit. now, what i will say is that the revenue components that we've discussed would be sitting and would target -- would be significant and would target folks who can most afford it. you may hear the argument that why not just go ahead and do all the cuts and we can debate the revenue issues in the election? you'll hear that from some republicans.

the problem is that, if you don't do the revenues then to get the same amount of savings you'u' got to have more cuts, which means that it's seniors or it's poor kids or it's medical researchers or it's our infrastructure that suffers. i do not want and i will not accept a deal in which i am asked to do nothing. in fact, i'm able to keep hundreds of thousands of dollars in additional income that i don't need while a parent out there who is struggling how to figure out how to send their kids to college suddenly find out they have a couple thousand less in grants or student loans. that's what the revenue debate is about. it's not because i want to raise

revenues for the sake of it oror i've got some grand ambition to create a bigger government. it's because, if we're going to treal solve the problem there are finite number of ways to do it. if you don't have revenues, it means you are putting more of a burden on the people who can least afford it. and that's not fair. i think the american people agree with me on that. sam stein. >> [inaudible] a large chunk [inaudible]. is now a good time to nashville and then to piggy back on the social security questiti, what do you think members of your own party will say [inaudible]. >> our biggest priority in this administration is getting the economy back on track and putting people back to work.

now, without relitigating the past, i am absolutely convinced and the vast majority of the economists are convinced that the steps we took in the recovery act saved millions of people their jobs or created a whole bunch of jobs. and part of the evidence of that is, as you see what happens with the recovery act phasing out. when i came into office and budgets were hemorrhaging at the state level, part of the recovery act was givinin states help so they wouldn't have to lay off teachers, police officers, firefighters. as we've seen that federal support for states diminish, you've seen the biggest job losses in the public sector, teachers, police officers, firefighters, losing their jobs. so my strong preference would be for us to figure out ways that

we can continue to provide help across the board. but i'm operating within some political constraints here because whatever i do has to go through the house of representatives. what that means, then, is that among the options that are available to us is, for example, the payroll tax cut which might not be exactly the kind of program that i would design in order to boost employment but does make a difference because itituts money in the pockets of people who are then spending it at businesses, large and small. that gives them more customers increases demand and it gives businesses a greater incentive to hire. and that would be, for example, a component of this overall package. unemployment benefits, again, puts money in the pockets of folks who are out there knocking on doors trying to find a job

every day, giving them those resources. that puts more money into the economy and that potentially improveseshe climate for businesses to want to hire. so, as part of a component of a deal, i think it's very important for us to look at what are the steps we can take short-term in order to put folks back to work? i am not somebody who believes that just because we solved the deficit and debt problems short-term, medium-term or long-term, that that automatically solves the unemployment problem. i think we're still going to have to do a bunch of stuff, including, for example, trade deals that are before congress right now that could add tens of thousands of jobs. republicans gave me this l lt at the beginning of this year as a priority, something they thought they could do. now i'm ready to do it and so far we haven't gotten the kind of movement that i would have expected. we've got the potential to

create an infrastructure bank that could put construction worker to work right now rebuilding our roads and bridges and our vital infrastructure all across the country. so those are still areas where i think we can make enormous progress. i do think that, if the country as a whole sees washington act responseably -- responsibly compromises being made, the deficit and debt being dealt with for 10, 15, 20 years, that that will help with businesses feeling more confident about aggressively investing in this country, foreign investors saying america's got its act together and are willing to invest. and so it can have a positive impact in overall growth and employment.

it's not the only solution. we're still going to have to have a strong jobs agenda. but it is part of the solution. i might add, it is the primeary solution that the republicans have offered when it comes to jobs. they keep on going out there and saying, you know, mr. president what are you doing about jobs? and when you ask them, well, what would you do? we've got to get government spending under control and we've got to get our deficits under control. so i say, ok let's go. where are they? i mean, this is what they claim would be the single biggest boost to business certainty and confidence. so what's the hold-up? with respect to social security, as i indicated earlier making changes to these programs is so difficult that this may be an

opportunity for us to go ahead and do something smart that strengthens social security and gives not just this generation but future generations the opportunity to say this thing is going to be in there for the long haul. now, that may not be possible and you're absolutely right that, as i said, social security is not the pry marry driver of our long-term deficits and debt. on the other hand, we do wananto make sure that social security is going to be there for next generations and, if there is a reasonable deal to be had on it, it is one that i'm willing to pursue. >> [inaudible] social security nashville -- >> i'm probably not going to get into the details right now of negotiations. i might enjoy negotiating with you. but i don't knkn how much juice you've got in the republican caucus. [laughter] that's what i figured.

all right. leleie clark. >> thank you mr. president. you've talked to economists and you've said economists agree a deal needs to be made. have you worked with u.s. business leaders at all to lobby congress to raise the debt ceceing? >> i have spoken extensively to business leaders and i'll be honest with you. i think thatatusiness leaders in the abstract want to see a resolution to this problem. what i've found is that they are somewhat hesitant to weigh in on some of these issues, even if they're willing to say something privately to me, partly because they've got a whole bunch of business pending before congress and they don't want to make anybody mad. so this is a problem of our politics and our politicians. but it's not exclusively a problem of our politics and our politicians.

i mean, the business community is a lot like everybody else, which is we want to cut everybody else's stuff and we want to keep our stuff. we want to cut our taxes but if you want to raise revenue with somebody else's taxes, that's ok. and that kind of mind-set is why we never get the problem solved. there have been business leaders like warren buffett, who i think have spoken out forcefully on this issue. i think some of the people who participated in the bowles simpson commission made very clear that they would agree to a balanced approach even if it meant for them individually that they were seeing slightly higher taxes on their income given that -- i think the average c.o.e., if i'm not mistaken, saw a 23% raise this past year while the average worker saw a zero to 1% raise last year.

so i think that there are a lot of well-meaning business people out there who recognize the need to make something happen, but i think that they've been hesitant to be as straightforward as i'd like when it says this is what a balanced package means. it means that we've got some spending cuts. it means that we've got some increased revenue. and it means that we're taking on some of the drivers of our long-term debt and deficits. >> can you say whether or not the administration -- >> i'm sorry? >> can you say, as the clock ticks down, whether or not the administration is s rking on any contingency plans if something doesn't happen by august 2? >> we are going to get this done by august 2. >> mr. p psident to follow on chip's question, you said that the speaker is cautious. do you have complete confidence that he can deliver the votes on anything that he agrees to?

is he in control of his caulked? >> you know, that's a question for the speaker, not a question for me. my experience with john boehner has been good. i think he's aood man who wants s do right by the country. i think that as chip alluded to, the politics that swept him into the speakership were good for a midterm election. they're tough for governing. and part of what the republican caucus generally needs to recognize is that american democracy works when people listen to each other, were willing to give each other the benefit of doubt. we assume the patriotism, good intentions of the other side, and we're willing to make some

sensible compromises to solve big problems. and i think that thererere members of that caucus who haven't fully arrived at that realization yet. >> your confidence then wasn't shaken by him walking away from the big deal? >> you know, these things are a tough process. look. in fairness, a big deal would require a lot of work on the part of harry reid and nancy pelosi and myself to bring democrats along. but the point is, if everybody gets in the boat at the same time, it doesn't tip over. i think that was bob dole's famous comment after striking the deal with the president andnd mr. gingrich back in the 90's and that is always the case when it comes to difficult but important tasks like this. last question. april ryan. >> mr. president, hi. i want to revisit the issue of

[inaudible]. in 2009, you said that [inaudible] and now you have minorities, the elderly as well as people who are fearful. also, what say you about [inaudible]? do you support that bill? are you supporting the republican bill [inaudible]? >> well, i'm not going to comment on a particular bill right now. let me speak to the broader point that you're asking about, april. this session has been hard -- this recession has been hard on everybody. but obviously it's harder on folks who got less.

and the thing that i am obsessed with and have been since i came into office is, all those families out there who are doing the right ththg every sinine day, who are looking after their families, who are just struggling to keep up and just feel like they're falling behind no matter how hard they work, i got a letter this past week from a a man who her husband had lost his job had pounded the pavement, finally found a job. they felt like things were stabilizing for a few months. six months later, he lost the second job. now they're back looking again and trying to figure out how are they ever going to make ends meet, and there are just

hundreds of thousands of folks out there who really have seen as tough an economy as we've seen in our lifetimeme now, we took very aggressive steps when i first came into office to yank the economy out of a potentially great depression and stabilize it and we were largely successful in stabilizing it, but we stabilized it at a level where unemployment is still too high and the economy is not growing fast enough to make up for all the jobs that were lost before i took office and the few months after i took office. so this unemployment rate has been really stubborn. there are a couple of ways that we can solve that. number one is to make sure that the overall economy is growing. and so we have continued to take a series of steps to make sure

that there's money in people's pockets, that they can go out there and spend. that's what the payroll tax cuts were about. we've taken a number of steps to make sure that businesses are willing to invest and that's what the small business tax cuts and some of the tax breaks for companies that are willing to invest in plants and equipment and zero capital gains for small businesses, that's what that was all about, giving businesses more incentive to vest. we have worked to make sure that the training programs that are out there for folks who are having to shift from jobs that may not exist anymore so that they can get the training they need for the jobs that do exist, that those are improved and sharpened. we have put forward is series of proposals to make sure that regulations that may be unnecessary and are hampering some businesses from investing, that we are examining all of those for their costs and their benefits, and if they are not

providing the kind of benefits in terms of the public health and clean air and clean water and worker safety that have been promised, then we should get rid of some of those regulations. so we've been looking at the whole menu of steps that can be taken. we are now in a situation where because the economy has moved slower than we wanted, because of the deficits and debt that result from the recession a a the crisis that, you know, taking an approach that costs trillions of dollars is not an option. we don't have that kind of money right now. what we can do is to solve this underlying debt and deficit problem for a long period of time so that then we can get back to having a conversation about, all right, since we now

have solved this problem, that's no longer what's hampering economic growth, that's not feeding business uncertainty, everybody feels that the ground is stable under our feet, are there some strategies that we could pursue that would really focus on some targeted job growth, infrastructure being a primary example. i mean, the infrastructure we've proposed is relatively small. but could we imagine a project where we're rereilding roads and bridges and courts and schchls and brbrdband lines and smart grids and taking all those construction workers and putting them to work right now? i can imagine a very aggressive program like that that i think the american people would rally around and would be good for the economy, not just next year or the year after but for the next 20 or 30 years. but we can't even have that conversation if people feel as

if we don't have our fiscal house in order. all right? so the idea here is let's act now, let's get this problem off the table, and then, with some firm footing with a solid fiscal situation, we will then be in a position to make the kind of investments that i think are going to be necessary to win the future. so this is not a right or left conservative-liberal situation, this is how do we operate in a smart way, understanding that we've got t me short-term challenges and some long-term challenges. if we can solve some of those long-term challenges, that frees up some of our energrgs to be able to deal with some of these short-term ones as well. all right? thank you very much, everybody. >> relatively short press conference. the press got a little folksy calling for compromise to get through debt limit negotiations

saying time to pull off the band-aid, eat our peas. he said if everybody gets in the boat at the same time it doesn't tip over. quickly to our congressional correspondent, jonathan karl. anything there that republican leaders on capitol hill can grab on to? >> i think so. two things really struck me. one is his praise for john boehner and his good faith efforts, he called them, to try to come to an agreement. but the thing republicans will int to is that the president was actually in some ways tougher on democrats here in the house than he was on republicans, saying the democrats are going to have to accept cuts to medicare benefits, cutting entitlement benefits. as you know, george, nancy pelosi has said absolutely no benefit cuts. >> that's right. he stressed that several times. jon karl, thanks very much. we return now to our regular program. diane sawyer will have a full wrap-up on "world news." thanks for joining us. have a good day.

thank you for starting with the workweek with us. catch diane tonight. bye-bye now.

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